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Business slow to automate

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While the majority of organisations worldwide are planning to automate business practices, with some jobs being discontinued as a result, less than a third of SA businesses are considering this course of action.

This is according to a new Grant Thornton International Business Report which researched the scale of technology’s influence on business.  The report highlighted that 56% of firms globally, and 31% of SA companies, are already automating or may do so in the coming 12 months. 

“The local situation is different for many reasons – including the high number of unskilled people, making it difficult for employees to operate more advanced machines or computers,” says Michiel Jonker, director: IT Advisory at Grant Thornton Johannesburg.

The Grant Thornton International Business Report (IBR) provides insight into the views and expectations of more than 10,000 businesses per year across 36 economies worldwide.  Research for this IBR Automation report is drawn from datasurveying 2,571 executives in 36 economies during February 2015.

Jonker adds that a failing government education system is not preparing young people for jobs in the 21st century, which is also referred to as the ‘second machine age’ and this is a major cause of the unacceptably high percentage of unskilled labour in this country.  Many matriculants cannot be considered for skilled employment, not to mention tertiary education, after school because of the poor quality education system in South Africa (e.g. low standards and pass rates).   

“Even if unskilled people get jobs, they are only trained to work in a specific sector,” he continues.  “If there are no longer any jobs in agriculture, for example, workers cannot simply move to the secondary sector as they do not have the required skills.  Unlike in the western world, where employees’ education background is a strong foundation, enabling them to move more easily between sectors, in SA the majority of workers are simply unable to jump from one sector to another – hence the occurrence of structural unemployment in South Africa.”

Jonker explains that structural unemployment is when unemployment for individuals lasts longer than usual due to issues in an economy, or a lack of skills across various industries which prevent workers from ‘cross trading’ their abilities. It’s when there’s a fundamental ‘mismatch’ between the skills which workers have vs those required and urgently needed in an economy or country.

Commenting on the IBR report, Steven Perkins, global leader for technology at Grant Thornton International, said: “In this digital age, businesses are looking to technology at an ever-increasing pace. Post-financial crisis, firms continue to strive for greater efficiency and better productivity. But fifty years on from PCs going into mass production, costs of capital are low while labour costs increase. As businesses consider whether to invest in staff or machines, for many, the latter is becoming the more cost-effective option.”

Despite this, the research reveals that 66% of SA businesses are not considering automating any business functions in the next 12 months, while only 3% might consider this.

“But automation will have to be introduced if we are to be globally competitive,” says Jonker.  “And there are several factors that will start driving automation here at home.  We face extraordinarily high labour costs, very low productivity and – compared to other countries, including the BRIC countries – entry salaries of young people are extremely high.

 “In addition, if we want to compete globally, we will have to play according to global rules. Productivity is extremely important for competition, which means that we have no choice but to automate.”

He notes that capitalism continues to demand maximisation of process, increasing output and decreasing input, all benefits offered by automation.

Jonker also affirms that there is a school of thought with a strong argument for rapid adoption of technology, as countries that do so benefit from higher per capita income than those that don’t.

“The Harvard School of Business revealed in a series of research papers that the rate at which nations adopted new tools hundreds of years ago strongly affected whether those nations are rich or poor today,’ said Jonker (Report by Associate Professor Diego A. Comin and colleagues).

“Technology is definitely an initiator for permanent change in society,” says Jonker.   “Research conducted by the World Bank entitled “Building broadband: Strategies and policies for the developing world” claims that a 10% increase in broadband penetration could raise GDP growth by 1 to 2% in low- and middle-income countries – a figure which is more than the impact which broadband penetration would have in high-income countries.”

Jonker emphasises that although this statistic is very much debated by different parties, and that it certainly differs from country to country, we cannot escape the fact that technology is causing change and bolstering globalisation – causing further problems for the South African economy and labourers with their low productivity (as globalisation means global competition, placing pressure on the labour market to be more productive).

Grant Thornton’s IBR findings also suggest that opportunities will arise for workers to assume new roles and responsibilities created by an increased use of technology. Globally over half of automating firms (54%) expect to redeploy workers in other areas, with 28% saying that workers will be trained to operate new machinery.

In South Africa, the IBR research revealed that 44% of firms that have automated, or intend to, said their people would be trained to use the new machines, while 32% expected automation to lead to a reduction in their organisation’s head count.

Jonker says the world will soon see new jobs that do not exist today and that automation will make people become redundant faster.

“We’re already seeing this in the IT environment where the ‘cloud’ is taking away certain traditional IT jobs,” he says.

“SA needs to accept that automation is going to happen, and that innovation will be key for economic growth.  We need to start encouraging our young people to consider jobs that cannot be replaced by automation.  They must design those robots, rather than going into occupations that will be replaced by robots.   For example, the introduction of more automation into the world is going to unleash many ‘dark forces’ that will exploit the enhanced level of system and data integration which will arise between millions of different parties, companies and systems. There is already a huge shortage of cybersecurity experts globally, and the upcoming generation will have to fill this new gap, especially if they want to live in a relatively safe world.

“Chances are extraordinarily high that it will be the repetitive (routine), uncreative jobs which will be automated. Certain parts of the world have already seen a decline in routine manual labour as well as cognitive jobs. It is only non-routine manual and cognitive jobs that are safe, as robots are not good at non-precision tasks – but only for now,” Jonker concludes.

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Legion gets a pro makeover

Lenovo’s latest Legion gaming laptop, the Y530, pulls out all the stops to deliver a sleek looking computer at a lower price point, writes BRYAN TURNER

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Gaming laptops have become synonymous with thick bodies, loud fans, and rainbow lights. Lenovo’s latest gaming laptop is here to change that.

The unit we reviewed housed an Intel Core i7-8750H, with an Nvidia GeForce GTX 1060 GPU. It featured dual storage, one bay fitted with a Samsung 256GB NVMe SSD and the other with a 1TB HDD.

The latest addition to the Legion lineup has become far more professional-looking, compared to the previous generation Y520. This trend is becoming more prevalent in the gaming laptop market and appeals to those who want to use a single device for work and play. Instead of sporting flashy colours, Lenovo has opted for an all-black computer body and a monochromatic, white light scheme. 

The laptop features an all-metal body with sharp edges and comes in at just under 24mm thick. Lenovo opted to make the Y530’s screen lid a little shorter than the bottom half of the laptop, which allowed for more goodies to be packed in the unit while still keeping it thin. The lid of the laptop features Legion branding that’s subtly engraved in the metal and aligned to the side. It also features a white light in the O of Legion that glows when the computer is in use.

The extra bit of the laptop body facilitates better cooling. Lenovo has upgraded its Legion fan system from the previous generation. For passive cooling, a type of cooling that relies on the body’s build instead of the fans, it handles regular office use without starting up the fans. A gaming laptop with good passive cooling is rare to find and Lenovo has shown that it can be achieved with a good build.

The internal fans start when gaming, as one would expect. They are about as loud as other gaming laptops, but this won’t be a problem for gamers who use headsets.

Click here to read about the screen quality, and how it performs in-game.

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Serious about security? Time to talk ISO 20000

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By EDWARD CARBUTT, executive director at Marval Africa

The looming Protection of Personal Information (PoPI) Act in South Africa and the introduction of the General Data Protection Regulation (GDPR) in the European Union (EU) have brought information security to the fore for many organisations. This in addition to the ISO 27001 standard that needs to be adhered to in order to assist the protection of information has caused organisations to scramble and ensure their information security measures are in line with regulatory requirements.

However, few businesses know or realise that if they are already ISO 20000 certified and follow Information Technology Infrastructure Library’s (ITIL) best practices they are effectively positioning themselves with other regulatory standards such as ISO 27001. In doing so, organisations are able to decrease the effort and time taken to adhere to the policies of this security standard.

ISO 20000, ITSM and ITIL – Where does ISO 27001 fit in?

ISO 20000 is the international standard for IT service management (ITSM) and reflects a business’s ability to adhere to best practice guidelines contained within the ITIL frameworks. 

ISO 20000 is process-based, it tackles many of the same topics as ISO 27001, such as incident management, problem management, change control and risk management. It’s therefore clear that if security forms part of ITSM’s outcomes, it should already be taken care of… So, why aren’t more businesses looking towards ISO 20000 to assist them in becoming ISO 27001 compliant?

The link to information security compliance

Information security management is a process that runs across the ITIL service life cycle interacting with all other processes in the framework. It is one of the key aspects of the ‘warranty of the service’, managed within the Service Level Agreement (SLA). The focus is ensuring that the quality of services produces the desired business value.

So, how are these standards different?

Even though ISO 20000 and ISO 27001 have many similarities and elements in common, there are still many differences. Organisations should take cognisance that ISO 20000 considers risk as one of the building elements of ITSM, but the standard is still service-based. Conversely, ISO 27001 is completely risk management-based and has risk management at its foundation whereas ISO 20000 encompasses much more

Why ISO 20000?

Organisations should ask themselves how they will derive value from ISO 20000. In Short, the ISO 20000 certification gives ITIL ‘teeth’. ITIL is not prescriptive, it is difficult to maintain momentum without adequate governance controls, however – ISO 20000 is.  ITIL does not insist on continual service improvement – ISO 20000 does. In addition, ITIL does not insist on evidence to prove quality and progress – ISO 20000 does.  ITIL is not being demanded by business – governance controls, auditability & agility are. This certification verifies an organisation’s ability to deliver ITSM within ITIL standards.

Ensuring ISO 20000 compliance provides peace of mind and shortens the journey to achieving other certifications, such as ISO 27001 compliance.

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